The industrial conglomerate’s transformation into a lean holding company is playing out in two starkly different directions: new green ventures spring up even as legacy plants are shuttered. This week, Thyssenkrupp unveiled Calvion GmbH, a subsidiary dedicated to carbon-reduction technologies, while confirming the closure of its automotive facility in Terre Haute, Indiana, by March 2027.
Calvion, carved out of the Polysius division, started operations in Ennigerloh with around 40 employees. The unit focuses on Oxyfuel applications — a process that replaces air with pure oxygen in industrial kilns to capture CO₂ more easily. The target market is energy-intensive sectors, particularly cement and lime producers. Polysius itself will now concentrate on traditional machinery, modernisation and service. The move is part of the ACES 2030 programme, which aims to recast Thyssenkrupp as a parent company for independent businesses.
On the other side of the balance sheet, cost-cutting remains brutal. The Terre Haute plant, which manufactured chassis components, will see its 230 jobs eliminated and production shifted to Hamilton, Ohio. That follows a broader cull in the automotive division last year that saved more than €150 million annually. The steel unit is planning even deeper cuts: nearly half the workforce could be shed or outsourced.
Despite the upheaval, management has held its financial guidance for the current fiscal year. It expects adjusted earnings before interest and tax of between €500 million and €900 million. Free cash flow before mergers and acquisitions is forecast to range from minus €600 million to minus €300 million, while the net loss is projected at €400 million to €800 million.
Should investors sell immediately? Or is it worth buying Thyssenkrupp?
Investors have so far brushed aside the red ink. Thyssenkrupp’s stock rose more than 2% on Wednesday to €10.69, pushing its 30-day gain to nearly 18%. The shares now trade comfortably above the 50-day moving average. On a year-to-date basis, the advance is also around 18%, and the price remains above the 200-day line — a signal of sustained upward momentum.
Technical indicators, however, flash caution. The relative strength index sits at 73, a level that typically signals an overbought condition. Analysts at Simply Wall St have warned that recent profit improvements have been heavily influenced by one-off effects, and that the industrial business must prove it can generate margins without extraordinary items.
The next major catalyst could come this summer, when the board may call an extraordinary general meeting to vote on spinning off the Materials Services division. If that proceeds alongside the Calvion launch and plant closures, Thyssenkrupp’s holding structure will take another concrete step forward — but the underlying earnings challenge remains unresolved.
Ad
Thyssenkrupp Stock: Buy or Sell?! New Thyssenkrupp Analysis from May 20 delivers the answer:
The latest Thyssenkrupp figures speak for themselves: Urgent action needed for Thyssenkrupp investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from May 20.
Thyssenkrupp: Buy or sell? Read more here...
